Non-allowable tax deductions are A. Entertainment expenses
- Allowable tax deductions include the expenses that a taxpayer incurs, which reduce the tax liability when using itemized deductions. Donations to charity, medical and educational expenses are allowable tax deductions. Though, these deductions have limits.
- The taxpayer cannot deduct these expenses above the approved limits. Unlike allowable tax deductions, non-allowable tax deductions cannot reduce a taxpayer's tax liability.
- Entertainment expenses (business-related) have completely been eliminated as allowable deductions from 2018 fiscal year.
Thus, a taxpayer cannot deduct expenses incurred for entertainment of any form.
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